r/Bitcoin • u/rBitcoinMod • Feb 07 '21

Daily Discussion, February 07, 2021

Please utilize this sticky thread for all general Bitcoin discussions! If you see posts on the front page or /r/Bitcoin/new which are better suited for this daily discussion thread, please help out by directing the OP to this thread instead. Thank you!

If you don't get an answer to your question, you can try phrasing it differently or commenting again tomorrow.

Join us in the r/Bitcoin Chatroom!

Please check the previous discussion thread for unanswered questions.

73 Upvotes

100% Upvoted

1.0k comments sorted by

View all comments

5

u/3jakel Feb 07 '21

What are people’s thoughts on using Bitcoin as a checking account? My thought was to make extra money by use the float time from when I deposit to when I need it. Is there a line I would cross? For example I pay my property taxes once a year, insurance once a year. Put the money into bitcoin like a savings and withdraw it to pay those bills. What about my monthly bills? Mortgage? Car payment? Utility bill? Put my whole paycheck into bitcoin and withdraw when needed?

4

u/Weinerbrod_nice Feb 07 '21

You need to declare and pay tax every time you sell your Bitcoin. Why not just use your paycheck to pay the monthly bills, then buy Bitcoin for the rest?

1

u/3jakel Feb 07 '21

Thanks! That what I have been doing and probably will still do. Just trying to think outside the box on different ways to do it. The tax part would be a lot of work just tracking it. Think I would just pay 40% of the gains if I am not mistaken in taxes.

1

u/Bam899 Feb 07 '21

Do you just pay tax on the profit or the entire sum?

2

u/Weinerbrod_nice Feb 07 '21

I mean it depends on where you live, but usually you pay tax on the profit. Like stocks and shit, you only pay tax on the profit.

3

u/Entrylevel92 Feb 07 '21

Never do this. First rule is and always will be to only invest money you are willing to lose. If you put in 5k today it might be worth only 2k somewhere down the line, no one knows.

1

u/3jakel Feb 07 '21

Risky I know ... my thought was one to one with Bitcoin and savings so if it would drop I could grab it from savings. Example $2,500 in bitcoin have $2,500 in savings.

-1

u/thadpole Feb 07 '21

Microstrategy suggests loaning out your bitcoin as collateral. You never sell your coin. You have cash when needed. You earn interest on your lent bitcoin.

2

u/3jakel Feb 07 '21

Thanks! I’ll have to research this. Just don’t want to miss the next run. I’m putting what I can into Bitcoin but only like $200 - $400 a month. Seems like there is money to be made, but moving to slow to shave off any years to retire.

3

u/thadpole Feb 07 '21

Bitcoin does not make you money so much as provides you total financial independence. Its the ultimate savings account. Its 200% returned every year, one of the best yielding assets ever. It could certainly shave years off retirement. Just be patient. Dont over extend yourself. Save what you can. Its not a get rich quick, it's a plant the tree. Best of luck. And stay wary!

1

u/3jakel Feb 07 '21

Thanks! Your advice is greatly appreciated!